Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
2 s. U" q$ t% R2 Z2 }( \; t* Acompanies producing Jet fuels but Biofuels. Also no wonder if some of
; V1 ]7 G/ Z% p( W; Rthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
; z, s4 j- M  `9 j2 ZEXXON, BG, BP, Cheveron ....xyz.. oils
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Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
* d7 o# q  P$ o0 L1 ~A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
: j5 J, E3 I7 x% Zof so much news. These reasons are:
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9 |  s/ n5 L, o; j! g3 G# J1. New oil has been found in Canada, Montana, North & South Dakota and
+ x7 `4 e& b( B& P. ein the ocean near Brazil. Each of these oil fields has more oil than
8 F; q, k- y$ R4 B/ n! oArabia.
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& \& d7 c& W% h  }3 ^2 |2. New natural gas has been found in Pennsylvania and West Virginia.
$ P# [5 y" s! a1 O" F  j4 @* jThis is the largest find in North America.

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1 K& x0 s: ?, w& j% Q* l/ N3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


4 z% N" K1 \! U3 b- D1 G1 T4. Production of bio-fuels is beginning to reach critical mass. Bio
1 q$ K4 Q9 X3 g/ t3 vfuel is being produced from many plants and algae. The production
$ T( L' E5 X- L8 v, spotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.


! s$ c  @; [. `& s7 Q5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
% F  M& V% ~& e8 j" f* Kproducing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
3 {. _# G1 z1 M1 ]1 W7 d# Tconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


4 L% y' D! s3 d& R4 u- n  A' R7. Every company in any form of transportaion business is replacing
  E9 f6 O; K. g0 ?. Colder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
8 T% U7 [& b" M6 z+ S) Fare experiencing 20% to 25% better fuel econony with the new
- V- V/ F& N4 C9 d, eequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
% d, C6 Q: Z: A' \, jfuel is cleaner and performs better than jet fuel.

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7 J1 h& z% ]& B+ E2 u& Z3 P8. Cities and counties throughout the US are selling the rights to
3 P, P% a1 H( j7 q! u9 Ucapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
1 P% A& o3 i$ F: Y* P! W5 H) r" q, moil.

# Y7 }1 u- k3 s( e
: J" R% B. O% Z7 |/ T4 b9 J) q9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" n3 ~; V. A! g2 s1 U/ Voil wells.
& W, k! b- R) a$ _' z  a

) i; o5 ]$ n, R8 u$ C10. Solar, wind and ocean energy is displacing oil as an energy
9 [3 {2 V3 Z! D: E1 Csource. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
$ B6 t7 r! A6 T- _8 |price of crude oil but the sum of all of them together is world
* @( `& f. k/ }- d3 x: R# tchanging. The important thing is that OPEC no longer has the ability
  M# r1 A) h" w& b/ J7 c- E+ qto control oil prices.
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; L4 g( `  h/ T# o$ a' y" o7 WWith the above scenario, I still believe that there are under
6 h! y1 g( v; Q6 ~performed OIL companies and probably they are yet to get the justified
  J% R& V+ B! F, i: y% v/ ~value .....
3 I) Q/ A9 _2 l) N* oIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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7 ~% S) B$ c6 F
. o6 e/ A. L+ k, q/ ~* TThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
& e9 Z! I& K2 `7 ~: K! b2009 ... FYI-Only